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Share this Story: COVID-19: Delaying new bus network, waste program part of Edmonton's plan to lower 2020 property tax by about one per cent

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Edmonton’s bus route overhaul and new waste separation strategy are being recommended for delay until early 2021 in the city’s effort to reduce property taxes by almost one per cent.

The two service delays are part of the city’s plan to overcome a projected $109.8-million tax-supported net loss through mid-September due to the COVID-19 pandemic while managing to lower property taxes even further instead of relying on an eight per cent increase to make up the shortfall.

COVID-19: Delaying new bus network, waste program part of Edmonton's plan to lower 2020 property tax by about one per centBack to video

In the budget adjustments presented by interim city manager Adam Laughlin Thursday afternoon, the city is proposing further expense reductions and a decrease in pay-as-you-go funding for capital projects to lower the municipal portion of property taxes to 1.4 per cent. This is a reduction from the previously approved 2.08 per cent tax increase.

With a significant decrease in the province’s education tax portion, residents and businesses can expect to see property tax bills in May lower than last year by about one per cent.

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“Our council is very committed to bringing down the tax rate as low as possible because we understand everyone is struggling,” Mayor Don Iveson told reporters. “We’re actively looking at ways council budgets can even contribute to lowering the expenses as well. That is to say, the budgets for our offices. But I am glad that we’ve already come down from what was previously approved last December. That’s an extraordinary feat.”

Delaying the revamped bus route system until early 2021 from Aug. 30 would save the city an estimated $3.7 million this year through a subsequent delay in the on-demand alternative transit service being brought online for those set to lose service in their neighbourhoods. These costs would be pushed to 2021 and 2022, which are now anticipated to have tax increases of 3.2 per cent and 2.4 per cent respectively.

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Phase one of the city’s new waste program with a separate bin for organics would be delayed until early next year from this summer and save $4.2 million in costs on the utility side. The city is proposing to use these savings to reduce utility bills for residents. Effective June 1, utility bills would decrease monthly by about $1.74.

Further temporary layoffs are also part of the city’s plan to reduce costs.

While Laughlin said workforce specifics couldn’t be provided since discussions are still ongoing in the lead-up to the April 27 budget approval meeting, he confirmed more employees will be laid off soon. The city has already issued temporary layoff notices to about 1,600 employees in the recreation branch.

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“We are reducing spending on consulting, training and travel. The far more difficult decision, however, is we are again going to be making temporary layoffs,” Laughlin said. “We intend to revisit service levels in the future when it is prudent to do so.”

Meanwhile, Iveson reiterated a call for a financial backstop from higher levels of government to help the city rebound from the pandemic without needing to slash services or increase taxes. The Federation of Canadian Municipalities, of which Iveson is chairman, asked for at least $10 billion Thursday from the federal government to be distributed to municipalities across the country.

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A proposal from the province’s Opposition NDP to double the Municipal Sustainability Initiative (MSI) to $1.92 billion this year could also be a way for the city to get an additional $100 million, Iveson said. Edmonton is already slated to receive $191.9 million this year for infrastructure projects.

NDP municipal affairs critic MLA Joe Ceci said that while he supports calls for the federal government to help municipalities, the provincial government can’t wait while local governments suffer from a lack of revenue compounded by the struggles in the oil and gas sector.

“With fully flexible funding they could choose to create jobs by accelerating capital projects, or protecting existing jobs of municipal workers or even support struggling local social groups or arts groups or simply keep a lid of property tax increases,” Ceci said.

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In a statement, Municipal Affairs Minister Kaycee Madu did not explicitly say whether he would consider the NDP’s idea. Madu said all levels of government are facing financial pressures during the pandemic and the Alberta government is helping municipalities.

“No matter what happens, our government will always ensure that Albertans are receiving the core services they rely on,” Madu said.

If the city’s urgent request for relief is met at either level, Iveson said it could mean the city will have room to lessen the number of layoffs and offer support for struggling taxpayers.

“If we get some relief, what it’s really going to mean is that the other expense reduction strategies around layoffs for example, we might be able to take a different approach around those which will really help us in the relaunch phase,” Iveson said. “Because the cuts frankly will have to be deeper on the staff side in order to stem the bleeding on the revenue side and that’s going to make it harder for us to relaunch and rebound from this.”

City council will vote on the expense reduction recommendations before setting the 2020 property tax rate Monday.

Share this Story: COVID-19: Delaying new bus network, waste program part of Edmonton's plan to lower 2020 property tax by about one per cent

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